No “Free Lunch,’ Especially At Tax Time @ (NAPSA)—Older Americans are frequently solicited with “free lunch” investment seminar invita- tions. This is particularly true during tax season, when theinvitations make claims that they can teach you to avoid paying any taxes. Although manyof these seminarssell legitimate products, there have been manyreports of people being scammed outof their life savings. Recent investigations show that four out of five investors age 60 and older received at least one invitation to a free lunch investment seminar in the past three years. Typically, an expensive meal is provided at no cost, and seminar attendees are promised advice about investing strategies or managing moneyin retirement. But a yearlong examination conducted by state securities regulators, the Securities and Ex- change Commission and the Financial Industry Regulatory Authority found that while many seminars were advertised as “educational” or “workshops,” 100 percent were instead sales presentations; 50 percent featured exaggerated or misleading advertising claims; and one-quarter involved recommendations for products not right for the individual clients’ circumstances. AARP, in collaboration with the North American Securities Administrators Association, is working diligently to fight this type of fraud by encouraging people to join their Free Lunch Monitor program. The program is part of a national campaign to monitor whether older investors are being pressured into purchasing investments that are not right for them. “A solid investment portfolio is the bedrock of a financially secure retirement,” said Jean Setzfand, director of Financial Security Outreach at AARP. “By empowering individuals with knowledge and information, we aim to create educated and financially savvy investors who can spot a scam whenthey are being targeted.” Oftentimes, consumers go to these seminars with the expectation of learning how to grow and protect their investments or how to shield their retirement savings from taxes. But during the seminar, or during follow-up phone calls and in-homevisits, they may be pressured to make quick, risky investment decisions without sound financial advice. AARPis encouraging everyday citizens to get involved by visiting the program’s Web site at www.aarp.org/nofreelunch to learn ways to detect scams or by becoming a Free Lunch Monitor and printing the “What to Listen for Checklist.” Individuals who receive invitations and choose to attend can take the checklist with them to the seminar and report their findings back to AARP.
